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Treasury to borrow $305 billion

By MARTIN CRUTSINGER

AP Economics Writer

WASHINGTON (AP) — The Treasury Department is seeking to borrow $305 billion in the current quarter through December and announced plans to borrow $541 billion in the first three months of next year. The first quarter amount would be the second highest borrowing on record.

The latest estimate of borrowing plans for the October-December quarter is $19 billion higher than an estimate Treasury made three months ago. Treasury officials said lower-than-expected government tax receipts increased the borrowing estimate.

The projection that the government will borrow $541 billion in the January-March quarter would rank second below the all-time high borrowing of $569 billion in the October-December quarter of 2008. That borrowing occurred when the government was spending massive amounts to battle the financial crisis.